Are you renting and simply throwing your money away?

The benefits of owning versus renting

1. Pay yourself, not your landlord – Each month you own a home, you build equity in your property. That means you own a little more with every payment you make. When you rent, it’s like 100% of your payment every month goes just to interest and you never own any more of that property than you did before. When you invest in a home, you invest in yourself.

2. Build generational wealth - Building wealth comes in many forms. Some individuals choose to invest in stocks and bonds, while others work on saving their income and paying down debt, among many other strategies. Historically, one of the most efficient and effective ways to build wealth over time is with the purchase of a home. Remember you are paying yourself and it's doubling as a place to live. When it's time to move up, you can rent it out and buy a new home. We'll show you how to do that when the time comes ;)
   
   

3. Mortgages may be cheaper – A monthly mortgage payment for a home may be cheaper than what you pay in rent for your typical apartment. Have you seen rent prices lately in the Conejo Valley? It's expensive. So, if you are paying $3,500 a month. in rent, you can actually purchase a home for $675,000. We've got some great condos in that price range.
   

4. Builds your credit – You might not know that your credit score is impacted positively when you show your ability to repay different types of loans. So even though you’ve been paying your car loan or your credit card consistently, you might find that your credit score hasn’t changed all that much over time. You’ll build positive credit faster by adding consistent, on-time mortgage payments into the mix.
   

5. Makes you eligible for mortgage interest deduction and other tax deductions.The IRS offers tax breaks to make homeownership more affordable by reducing your tax bill. Mortgage interest deduction allows homeowners to deduct the interest they pay on mortgage debt as just one example.

6. Create Community – One of the best parts of home ownership is being part of a community. At an apartment complex, you’ll have a ton of neighbors you never meet, and with everyone moving in and out so often, it’s difficult to find that sense of belonging. When you own a home, you get to put down roots in a neighborhood and form lifelong friendships with the people around you.

7. More freedom – If you’re renting a home and you decide to paint the walls or change the floors, you’re increasing the value of the home, but you don’t get to enjoy it. You’re adding value for your landlord. You also will probably need his permission before you do anything to the property. Well that’s no fun! When you own the home, you get to make all those life choices yourself, and if you do a good job and increase the value of the home, then you get to keep the profits on the property when you sell it.

If the interest rates are scaring you, know that there are programs that will reduce your interest rate for a year or two until rates go down and you can refinance. We work with some great lenders who can definitely help you get into a home you can afford.